Small Home-Building Companies
Feel Pinch Amid Market Boom

By

Carlos Tejada Staff Reporter of The Wall Street Journal

Updated Sept. 23, 1998 12:40 a.m. ET

Dennis D. McConnell, owner of a small home-building concern in the thriving Atlanta market, knew he was in trouble when a subcontractor showed up for work in a new Dodge Ram pickup truck. The new truck meant business was so good that the stucco man had a lot of other jobs to see to and was probably charging more, to boot.

"All my other subs are driving new trucks, too," Mr. McConnell laments. The housing market is booming, with housing starts and home sales continuing at a fiery pace. But small builders such as...